The hotel market in the south of Gran Canaria will have to improve its negotiation skills. The bankruptcy of FTI remains in the hands of two tour operators: TUI and Alltours will eat the toast of those who chose to be heirs of Thomas Cook in 2019, which dragged Circle du Soleil into financial aid, which is now returning to the south of Gran Canaria after the financial juggling of the Asian fund, its owner, Fosun. Customers could benefit from this, but in the medium term it will be even more expensive to fly on holiday.
Travel companies compete for customers of insolvent supplier FTI. After competitors have already enormously increased their quotas for the summer holidays that have just begun, they are increasing their quotas in winter, when travel is somewhat weaker: TUI next winter will put up to 150.000 additional seats on the German market for tourists. Its competitor Alltours expands its offer to southern Gran Canaria in winter by 50 percent. Of course, the company is not only thinking about this summer, but also about what will happen next.
Although FTI had been in financial trouble for some time and was no longer a strong competitor, the third company was leaving the German market when it declared bankruptcy exactly three weeks ago. The wave of insolvencies at travel group FTI has hit another company. After FTI Touristik and BigXtra Touristik already suffered financial difficulties, the flight subsidiary Flight Trading GmbH is now also filing for bankruptcy, according to reports airliners.de.
This step has a direct impact on partner airlines such as Sun Express, Eurowings and Condor, which previously had charter contracts and flight quotas with subsidiary FTI. The airlines had to maintain their contracts with Flight Trading until they declared bankruptcy. However, they can now officially reschedule. The financial damage to the affected airlines cannot yet be fully predicted. The bankruptcy administrator also announced that all tourist packages and certain individual services for departures from July 6 had been cancelled. The cancellations affect a total of about 175.000 combined trips. The reserves of the insolvent companies FTI Touristik, BigXtra Touristik and the sales brand 5 vor Flug are affected.
